What does Gross Profit Ratio indicate?...

What does Gross Profit Ratio indicate?

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Gross Profit Ratio indicates the relationship between gross profit and Revenue from Operations (Net Sales).

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From the following statement of profit and loss for the year ended 31st March ,2019 of Reynolds Ltd. Calculate (i) Gross Profit Ratio,(ii) Operating Profit Ratio,(iii) Operating Ratio, ( iv) Expenses Ratio, (v) Net Profit Ratio.

(i) Revenue form operations: cash sales Rs 420000, credit sales Rs 600000, Return Rs 20000 cost of revenue from opeation sor cost of goods sold Rs 800000 calculate gross profit ratio. (ii) average inventroy Rs 160000, inventory trunover ratio 6 times, selling prices 25% above cost .calculate gross profit ratio (iii) opening inventroy rs 100000, closing inventory Rs 60000 inventory turnover ratio 8 times selling price 25% above cost calculate gross profit ratio.

Calculate the following ratio on the basis of following information: (i) Gross Profit Ratio (ii) Current Ratio (iii) Acid Test Ratio (iv) Inventory Turnover Ratio (v) Fixed Assets Turnover Ratio {:(,,Rs.),("Gross Profit",,50_(,)000),("Revenue from Operations",,1_(,)00_(,)000),("Inventory",,15_(,)000),("Trade Receivables",,27_(,)500),("Cash and Cash Equivalents",,17_(,)500),("Current Liablilites",,40_(,)000),("Land & Building",,50_(,)000),("Plant & Machinery",,30_(,)000),("Furniture",,20_(,)000):}

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What does Gross Profit Ratio indicate?
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